Argan Inc (NYSE:AGX) Fits Minervini’s High-Growth Trend Template with Strong Technicals and Earnings Momentum

Identifying High-Growth Stocks with Minervini’s Trend Template: A Look at Argan Inc (NYSE:AGX)

Mark Minervini’s Trend Template is a methodical way to find stocks in strong upward trends, blending technical and fundamental factors to highlight promising opportunities. The approach focuses on stocks showing solid price movement, strong performance compared to peers, and faster earnings growth, traits often seen in top-performing stocks. One stock currently fitting these conditions is Argan Inc (NYSE:AGX), a construction and engineering company with a notable growth trajectory.

Why AGX Matches the Minervini Trend Template

Argan Inc meets Minervini’s technical requirements, which aim to identify stocks in clear upward trends:

• Price Above Key Moving Averages: AGX is trading above its 50-day ($220.02), 150-day ($173.54), and 200-day ($166.65) moving averages, confirming a positive long-term trend.
• Rising Moving Averages: Both the 150-day and 200-day MAs are moving higher, supporting continued momentum.
• Strong Performance Compared to Peers: With a ChartMill Relative Strength (CRS) score of 97.24, AGX ranks among the top stocks in the market, a sign of leadership.
• Price Close to 52-Week High: At $224.54, AGX is within 11.5% of its 52-week high ($253.79) and 222% above its 52-week low ($69.81), reflecting strong investor interest.

These elements align with Minervini’s view that stocks near highs with strong performance often continue to do well.

Strong Growth Momentum: Earnings and Revenue Growth

Beyond technical factors, AGX shows fundamental strength, a key part of Minervini’s approach:

• Rapid Earnings Growth:

  • EPS Growth (TTM): +153.7% YoY
  • Latest Quarter EPS Growth (Q2Q): +175.9%
  • Consistent Earnings Surprises: AGX has exceeded EPS estimates in all of the last four quarters, with an average surprise of 57%.

• Revenue Growth:

  • Revenue Growth (TTM): +45.1% YoY
  • Latest Quarter Sales Growth: +22.8%
  • Higher Estimates: Analysts have increased next-year EPS forecasts by 13.6% over the past three months.

• Better Profit Margins:

  • Latest Quarter Profit Margin: 11.64%, up from 5.64% two years ago, showing improved efficiency.

These numbers indicate AGX is not only growing but doing so at a faster pace, a trait Minervini values in high-momentum stocks.

Technical Analysis Overview

ChartMill’s technical report gives AGX a perfect 10/10 score, noting:

• A steady long-term upward trend with reliable performance.
• Support levels at $202.52-$203.36 (daily) and $146.80 (weekly), offering downside protection.
• Resistance around $243.11-$244.99, which, if surpassed, could lead to further gains.
• A setup rating of 6, suggesting a pause before potential continued growth.

Read the full technical analysis here.

Conclusion

Argan Inc (NYSE:AGX) is a prime example of the kind of stock Minervini’s strategy targets: one with strong technicals and improving fundamentals. Its mix of price momentum, earnings growth, and sector leadership makes it an attractive option for growth-focused investors.

For more stocks meeting these conditions, check out our High Growth Momentum + Trend Template screen.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider risk management before trading.